Currency, stock markets move on strong jobs data
Markets across the board shifted on Friday, as last month’s Non-Farm Payrolls report came in better than initially expected.
Figures from the Labor Department showed that payrolls increased by 943,000 in July, which was better than the 845,000 many had forecasted.
Over a third of the jobs added came from the Leisure and Hospitality sector, with public sector positions accounting for around 240,000 jobs.
Gold prices fell on the report, dropping to $1,758, which is the lowest level since June 30th.
GBPUSD dropped to a 1-week low, with the S&P 500 and Dow Jones recording all-time highs on the day.
Sterling climbs to 18-month high versus Euro
On Friday, the British pound rose to its highest level against the Euro since the beginning of the coronavirus pandemic.
EURGBP fell to an intraday low of 0.8469 as markets continued to react to the Bank of England’s monetary policy decisions on Thursday.
After keeping rates unchanged, the bank gave some forward guidance stating that it expected some tightening of monetary policy to be needed over the next 2 years.
The bank’s Deputy Governor Ben Broadbent stated that, “We do think it’s more likely than not that some moderate tightening of policy … will be necessary”.
London’s FTSE 100 closed higher, despite the stronger Pound.
Bitcoin rallies above $40,000
The price of the world’s largest Cryptocurrency was trading higher in today’s session, as investors continued to flock to Bitcoin.
BTCUSD has rallied for three consecutive sessions, after it was announced
that Google was easing restrictions on Cryptocurrency ads.
Today’s intraday high saw Bitcoin reach $42,702, which is its highest level since April, when news broke that Tesla was no longer accepting it as payment.
As a result of Friday’s move, Bitcoin’s total market cap rose to $792.2 billion, which is roughly around 45.78% of the total cryptocurrency space.
Many now wait to see if this rally will hold, unlike others in recent weeks which swiftly lost momentum.
Quote of the day – “Markets are constantly in a state of uncertainty and flux, and money is made by discounting the obvious and betting on the unexpected.”– George Soros